What is PMFBY?
Launch Date: Pradhan Mantri Fasal Bima Yojana was launched on 18 February 2016
Stakeholders: Central Government, State Government, Banks, CSCs, Insurance Companies, Farmers.
Pradhan Mantri Fasal Bima Yojna (PMFBY) is a scheme which provides a comprehensive insurance cover against the failure of the crop thus helping to stabilize the income of the farmers.
Fasal Bima Yojana Premiums: 2% for all the Kharif Food & Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops, and 5% for Annual commercial crops.
The Objectives of the Pradhan Mantri Fasal Bima Yojana:
Pradhan Mantri Fasal Bima Yojana aims to support sustainable production in the agriculture sector by:
- Providing farmers financial support who are suffering from crop loss due to different calamities.
- Stabilizing the farmer’s income so that they can be financially strong to continue farming.
- Supporting farmers in adopting into farmers innovative and modern agricultural practices.
- This scheme will help the proper flow of credit in the agriculture sector which will contribute to the food security in the country.
- This scheme will protect the farmers from the risks affecting their finances.
Source: gnttv
Who can be covered under PMFBY:
Pradhan Mantri Fasal Bima Yojana scheme is compulsory for all the farmers who have sanctioned seasonal agricultural operation loans from financial institutions that is loanee farmers.
Pradhan Mantri Fasal Bima Yojana is optional for non-loanee farmers.
The insurance coverage will strictly be comparable to the sum insured/hectare, as indicated in the government notification or/and on the National Crop Insurance Portal, multiplied by the seeded area for the notified crop.
How are farmers supposed to sign up for the Scheme?
- Both loanee and non-loanee farmers must join in the National Crop Insurance Portal (NCIP), which is managed by the Ministry of Agriculture and Farmers Welfare in New Delhi. Banks that grant Seasonal Crop Loans to farmers are responsible for uploading data into the NCIP.
- Non-loanee farmers, intermediaries, Common Service Centers, farmers on their own, and other Agencies are required to upload data in the NCIP.
- Premiums must be paid by NEFT only, DDs and cheques are not accepted. Similarly, offline applications for enrollment are not accepted because all applications must be completed online.
Crops covered under Pradhan Mantri Fasal Bima Yojana:
- Food Crops (Cereals, Millets, and Pulses) and Oilseeds
Premium to be paid to the farmer: Kharif – 2% and Rabi – 1.5%
- Annual Horticultural and Commercial crops
Premium to be paid to the farmer: 5%
What risks can be covered under PMFBY:
| Risks | |
| Prevented Sowing/Planting/Germination Risk | The insured region is unable to seed, plant, or germinate because of insufficient rainfall or unfavorable seasonal/weather conditions. 25% of the total insured will be paid, and the policy will be canceled. |
| Standing Crop (Sowing to Harvesting) | Complete risk insurance covers yield losses caused by non-preventable risks such as drought, dry spells, flood, inundation, extensive pest and disease attacks, landslides, natural fires, lightning, storms, hailstorms, and cyclones. |
| Post-Harvest Losses | Coverage is only offered for crops that must be dried in cut and spread / tiny packaged condition in the field after harvesting against certain hazards such as hailstorms, cyclones, cyclonic rains, and unseasonal rains for a maximum of two weeks. |
| Localized Calamities | Loss/damage to notified insured crops resulting from the occurrence of identified localized risks of hailstorms, Landslides, Inundation, Cloud bursts, and Natural fire due to lightning affecting isolated farms in the notified area. |
| Add-on coverage for crop loss due to attack by wild animals | Where the danger is deemed to be significant and recognizable, states may consider providing additional coverage for crop loss caused by wild animal attacks. |
When to inform about the claim for Pradhan Mantri Fasal Bima Yojana?
- Prevented Sowing/Planting/Germination Risk and mid-season adversity, which is applicable to the area-based strategy. Individual farmers do not need to be intimate. The loss will be estimated by the state government using proxy indicators, etc.
- Post- harvest Losses: The provision of Indemnity is Up to a maximum duration of two weeks after harvesting, for crops that are required to be dried in cut and spread / tiny packaged form in the field after harvesting against specific hazards of hailstorm, cyclone, cyclonic rains, and unseasonal rains. Intimation may be given within 72 hours by the farmer either directly to the insurance company, concerned bank, or local agriculture department Govt. /district officials or through our toll-free number (1800 200 7710) or on the National Crop Insurance Portal. Additional 24 hours for the agency/department to register with concerned insurance company.
- Localized Calamities: When the loss happened due to the identified localized risks like Hailstorm, Landslide, Cloud Burst, and Natural Fire due to lightning affecting isolated farms in the notified area.
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